For the first six months of 2004, Capgemini reported a net loss of $164.7 million, compared with a $109.8 million loss during the same period a year ago. The company says the loss stems in part from cost overruns associated with IT-services contracts signed in 2001 and 2002. The company also blamed poor performance in its North American operations, where revenue fell 22% in the first half.
To shore up its bottom line, Capgemini says it plans to sell unprofitable assets valued at $488 million. The company wouldn't say which assets will be divested or when they would be put up for bid.